Revamped HMDA Report: Know Before You Submit
by Shanon Conroy
Published
June 26, 2017
Wolters
Kluwer Regulatory Consultant and Manager for Training & Business Servicing
Processing Operations Shanon Conroy looks at how to prepare for the new HMDA
rule in her article, “Revamped HMDA Report: Know Before You Submit,” available now on Banking Exchange.
Here’s an
excerpt to get you started.
Remember your first time trying to ride a
bike? The thought of taking flight without Mom or Dad’s help was terrifying. But
with some encouragement and guidance going through the basic steps, before you
knew it, you were off on your own.
When it comes to data collection and
reporting, we all know the basics. Institutions subject to the Home Mortgage
Disclosure Act (HMDA) and Community Reinvestment Act (CRA) are required to
collect, record, report, and disclose information about their mortgage and small
business lending activity. Every year on March 1, institutions must submit their
lending data from the previous year to the federal government. This data is then
aggregated by the government and used for many purposes: in CRA exams, by
institutions to analyze lending patterns of competitors, by community groups,
and for fair-lending purposes.
The new HMDA rule dramatically changes
data collection in just about every way: institutions and transactions covered;
required data points; collection and reporting of applicant information such as
gender, race, and ethnicity; and the processes for reporting and disclosing the
data. While most of these data changes apply on or after Jan. 1, 2018, some
changes such as institutional coverage and submission/reporting requirements,
apply to 2017 data.
Read the full-article on the Banking Exchange website.